MARKETING
ENVIRONMENT
Consists of external forces that directly or indirectly
influence an organization’s acquisition of inputs
(financial, human, natural, and information) and
creation of outputs (products).
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COMPETITIVE FORCES
Competition: Other organizations
that market products similar to or
that can be substituted for a
marketer’s products in the same
geographic area.
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TYPES OF COMPETITION
• Brand Competitors (Pepsi –vs- Coke)
• Product Competitors (Pepsi –vs- Snapple)
• Generic Competitors
(Pepsi –vs- Tap Water)
• Total Budget Competitors
(Pepsico –vs- Proctor & Gamble)
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COMPETITIVE STRUCTURES
• Monopoly: No close substitutes and
organization is sole source of supply.
• Oligopoly: A few sellers dominate.
• Monopolistic: Many potential competitors
trying to develop a differential marketing
strategy.
• Pure Competition: Large number of sellers
with none strong.
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ECONOMIC FORCES
• Prosperity: Low unemployment & high
income
• Recession: Unemployment up & buying
power down
• Depression: Very high unemployment, very
low wages, and very low disposable income
• Recovery: From recession or depression to
prosperity
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BUYING POWER
Resources such as money, goods, and services
that can be traded in an exchange.
• Income
• Disposable Income
• Discretionary Income
• Wealth
• Willingness to Spend
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POLITICAL FORCES
• Closely related to the legal and Regulatory
Forces because legislation, legal decisions,
and regulatory agencies are created and
operated by elected officials.
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LEGAL AND REGULATORY
FORCES
Procompetitive Legislation and Consumer Protection
– Sherman Antitrust Act (1890)
– Clayton Act (1914)
– FTC Act (1914)
– Robinson-Patman Act (1936)
– Nutrition Labeling & Education Act (1990)
– Do Not Call Implementation Act (2003)
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FEDERAL TRADE
COMMISSION (FTC)
• Regulates a variety of business practices
and curbs:
– False Advertising
– Misleading Pricing
– Deceptive Packaging & Labeling
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SELF REGULATION
• Better Business Bureau (BBB)
• National Advertising Review Board
(NARB)
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TECHNOLOGICAL FORCES
• Technology:The application of knowledge
and tools to solve problems and perform
tasks more efficiently.
– Physiological needs
– PC
– Dynamics, Reach, and Self-Sustaining Nature
– Marketing productivity
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SOCIOCULTURAL FORCES
• The influence in a society and its
cultures that change people’s
attitudes, beliefs, norms, customs,
and lifestyles.
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DEMOGRAPHICS AND
DIVERSITY
• Increase of Older Consumers
• Singles on the Rise
• Another Baby Boom
• Rising Multicultural Nature of USA
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CULTURAL VALUES
• Health Consciousness
• Family and Marriage Values
• Environmental Consciousness
• Consumerism
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